CLIMATE POLITICS,STRATEGIC BEHAVIOUR,HOLD‐OUTS,FREE RIDERS AND RENT‐SEEKERS

This paper examines recent developments in US climate change policy from a public choice perspective. Policies such as ‘cap and trade’ threaten to impose substantial costs on individuals and businesses, yet their effectiveness at reducing greenhouse gas emissions is questionable. Support for legislation that restricts emissions can partly be explained by the strategic behaviour of various special interests.     

THE CULT[URE] OF THE CUSTOMER

Much organizational restructuring, at least in the UK and USA, seeks to replace organizational regulation by that of the market. These developments centre around an emphasis on relations with customers - the ‘sovereign consumer’- as a paradigm for effective forms of organizational relations; they are apparent in, and underpin, a wide variety of organizational developments: just-in-time, total quality management, culture change programmes. Understanding these developments requires consideration of the discourse of enterprise of which the culture of the (internal) customer constitutes a key element. Defining internal organizational relations ‘as if’they were customer/supplier relations means replacing bureaucratic regulation and stability with the constant uncertainties of the market, and thus requiring enterprise from employees. This discourse has fundamental implications for management attempts to define working practices and relations and, ultimately, has impact on the conduct and identities of employees. Understanding these developments is not possible if analysis remains at the level of the organization. It requires that organizational restructurings, and the discourse which supports them, be located within the social and political rationality of enterprise. The certainties of management, the conviction that environmental challenge and competitive threat must be met by the cult[ure] of the customer, are due to managements’largely unquestioned acceptance of the normality and perceived good sense of the discourse of enterprise.     

PROFESSIONALIZATION AND BRITISH MANAGEMENT PRACTICEPROFESSIONALIZATION AND BRITISH MANAGEMENT PRACTICE: CASE EVIDENCE FROM MEDIUM-SIZED FIRMS IN TWO INDUSTRIAL SECTORS*

High levels of occupational specialization, problems of cross-functional integration and distinct bureaucratic tendencies have traditionally been seen as problems endemic to British management practice. Over the last decade, these problems are expected to have disappeared - or at least diminished - as major developments in management and organizational theory, as well as changing economic circumstances, have redirected management thinking towards ‘new’ ideas of flatter, simpler organizational structures, increased flexibility and decentralization, improvements in the quality of inter-functional relations and the like. Yet, despite these developments, there is comparatively little research that has investigated actual patterns of change within management and, in particular, what is happening in what could be regarded as the mainstream of British industry - namely, ‘ordinary’, medium-sized firms operating in ‘traditional’ industrial sectors. Moreover, rarely does such research focus upon the implications of management change for the strategies of professionalization adopted by competing specialist occupational groups within management. This paper sets out to help fill these gaps, by reporting the findings from case studies of four such firms, taking into account the particular contexts and historical circumstances that have helped shape any such change and drawing out the key influences on changed management practice.     

Parenthetic Learning in Organizations: Toward the Unlearning of the Unlearning Model

The organizational ‘unlearning’ model is discussed. It is argued that the model fails to capture the individual and organizational processes necessary to achieve the objectives for which it is proposed. To achieve these objectives, an alternative, ‘parenthetic learning’ model of organizational learning and change is proposed.     

The labour relations heritage and lean manufacturing at Fiat

The objective of the paper is interpreting, from an evolutionary perspective, recent developments of work organization and human resource management policies at Fiat Auto, one of the world's largest automobile manufacturers, which achieved a successful restructuring in the early 1990s. Building on a heritage of adversarial labour relations and ‘mass production’ organizational principles, Fiat developed an original and to some extent hybrid version of ‘lean’ human resource management practices (teamwork, flexible compensation, multi-skilling, etc.).

The paper analyses this process of organizational change from an evolutionary perspective based on the concept of dynamic capabilities. From this standpoint, IR. HRM and work organization practices are the result of a learning process, based on original development, imitation, analogical replication, combination and selection of organizational capabilities; organizational capabilities have a cumulative and path-dependent nature; workplace innovations are also rooted in organizational absorptive capacities, that is, the ability of firms to exploit new (and often extramural) organizational and HRM developments; the existence of complementarities among organizational competencies, assets and choices in term of HRM are likely to push toward the adoption of a set or system of (rather than single and insulated) innovations in work organization, HRM practices and industrial relations policies.

The data provided in the paper show that the process of innovation of workplace practices at Fiat Auto (summarized by the concept of the Fabbrica Integrata) is curiously non-linear. The newly designed HRM policies have, on the one hand, been resisted by the unions (who have not been involved in the design process) and by segments of the work-force; on the other hand, they have been hindered by existing organizational features and personnel practices which, in turn, were key success factors during the 1980s. This inertia is significantly lower at the new greenfield plant of Melfi. On the whole, the restructuring process was successful from the competitive and financial standpoint, and represents the basis on which management and the unions can develop a new co-operative model of industrial relations.     

Human resource strategy for the new ICT-driven business context

The influence of technology developments on the content and arrangement of work is a recurring theme in many publications. Advances in information and communication technology (ICT) are reshaping internal organizational design and necessitate new types of employee capabilities and behaviour. As will be illustrated, ICT developments create a heightened level of business and market dynamics. Arguably, these dynamics affect the required capabilities and behaviour of employees even more strongly. Similarly, the way businesses are operating, and customer, supplier and business partner relationships are formed, is also affected by the rapid ICT progress. Key drivers shaping the new business context will be addressed. This paper argues that the trends and developments illustrated necessitate revision of traditionally held beliefs and paradigms. Said revision has important implications for the strategy and management of human resources, whereby the focus on employee behaviour is crucial. Two key aspects of a human resource strategy will be discussed, identified as HR alignment and HR enablement. With the focus on employee behaviour, attention should be given to the organizational context, since this context determines employee behaviour. Said context is defined by organizational culture, management practices and various organizational structures and systems. In view of the necessary organizational change associated with the developments illustrated, the importance of consistency and coherence between the elements of the organizational context is stressed. Establishing change under conditions of consistency and coherence is therefore identified as a crucial organizational competence.     

Welcoming Refugees and the Cultural Wealth of Cities: Intersections of Urban Development and Refugee Humanitarianism

In a context of rising nativism, cities across liberal democracies are enacting agendas to ‘welcome’ migrants and refugees. Existing scholarship examines this contentious political geography as reflecting either accommodative or restrictive responses to local immigrant populations. Through this lens, pro‐immigrant policies and dynamics are seen to recognize and support a set of pre‐defined immigrant ‘interests’, with the pertinent question being which local actors initiate processes of incorporation and why. Drawing on urban scholarship, this article offers an alternative framework through an analysis of resettled refugees’ experiences within the ‘welcoming agenda’ of Pittsburgh, Pennsylvania. I show that this agenda is tethered to postindustrial ideologies of urban development, which see building and promoting ‘diversity’ as an economic exigency. As such, locally resettled refugees are incentivized to participate in a ‘symbolic economy’ valuing images of diversity, cosmopolitanism and immigrant contribution. Refugees gain access to resources, recognition and decision makers through participation in this symbolic economy, a process constituting a previously unexamined form of incorporation. I advance the concept of the ‘welcomed refugee’ to organize thinking about this process and call for critical attention to the forms of incorporation fostered in pro‐immigrant, cosmopolitan, substate settings.     

Celebrating Organization Theory: The After‐Party

Organization and management theory as a field faces criticisms from several scholars that it has an unhealthy obsession with ‘theory’, while at the same time seeing very little cumulative theoretical progress. Some have even accused the field of being mired in the 1970s. Lounsbury and Beckman counter with an expansive review of several thriving domains of contemporary organizational research that demonstrate the theoretical vibrancy of the field. This article responds by seeking to define ‘theoretical progress’ in ways that extend beyond just the volume of articles produced. It finds that 1970s‐era classics have seen a surge of citations since the turn of the twenty‐first century, consistent with a view of limited progress. It concludes by outlining three areas of problem‐driven research eminently worthy of attention from organizational researchers.     

STRATEGY AND STRUCTURAL ADJUSTMENT TO REGAIN FIT AND PERFORMANCE: IN DEFENCE OF CONTINGENCY THEORY

Comparative, contingency approaches to organization structure have been criticized as being inherently static. The present article argues that functionalist theories and quantitative methods can explain structural change. This is exemplified by a diachronic enquiry into strategy and structure. Several propositions about organizational dynamics relating diversification, reorganization and performance are supported. However, the notion of contingency adjustment to structure to attain match as a frequent alternative to structural adjustment to contingencies is not borne out. Neither of the two prevailing theories of structural change, ‘contingency determinism’nor ‘strategic choice’, is completely adequate and a third formulation is advanced: that of ‘structural adjustment to regain fit’. While structural-functional enquiry into organizations using comparative quantitative methods has yielded information about structural statics, the contribution to knowledge of dynamics seems more problematic. This article seeks to record that structural-functionalism does inform the analysis of organizational change and to show that quantitative contingency approaches can illuminate change if the theory used in the analysis is formalized properly. This involves the partial abandonment of both of the main prevailing theories of structural change: contingency determinism and strategic choice. In their place this article offers as a potentially more fruitful model the structural adaptation to regain fit formulation. Within this the role of performance is shown to be important. The advantage of this framework is demonstrated empirically by means of an examination of the relationship between strategy and structure.     

STRATEGIES OF EXPANSION AND ORGANIZATIONAL DEVELOPMENTS IN EUROPEAN AND AMERICAN FIRMS 1

Summary The pace of change of the last ten years has challenged the traditional management processes to the point that the key organizational question is no longer to fit new strategies into available organizational patterns but instead to fit the organizational structure to the kind of problems to be faced. However, the intricacy of strategic and structural difficulties is often such that the appraisal of organizational inadequacies may prove difficult: symptoms may be wrongly considered as problems which may in turn be over-or understated so that corrective measures may well be inappropriate. This is why the saying‘When in trouble, reoganize!’is of little practicability. The lack of organizational planning in framing responses to structural problems will more and more make adjustments necessary. In our attempts to define the nature of organizational changes which are likely to occur within business firms in the future, we shall isolate the stragetic decisions related to corporate expansion on a transnational, trans-continental and eventually on an intercontinental scale. We shall start by analysing present organizational patterns — as they reflect decisions made in the past regarding current strategies — and we shall try to outline some possible structural developments as they may be required by the implementation of future strategies.     

Organizational structure and the internal economy of the firm: The UK insurance industry

There now exists a substantial volume of empirical evidence which has examined the superiority of the ‘M’-form organizational structure for the management of large, diversified enterprises. Regrettably, attention has mainly been focused on manufacturing companies, despite the rising importance of the service sector in most major economies. This paper examines organizational structures within one segment of the UK service sector: the insurance industry. In the UK this industry has undergone significant, regulatory-driven structural change and, as a consequence, the majority of companies have undertaken organizational change. The results produced, however, suggest that many of these companies adopted sub-optimal divisionalized structures.     

Strategic Moves and Organizational Survival in Turbulent Environments: The Case of Spanish Banks (1983–97)*

abstract The main purpose of this paper is to examine the effect of ‘strategic moves’ (or strategic change) on the likelihood of organizational survival in a population of firms which has undergone radical transformations in its environment. To this end, we propose and test two competitive hypotheses which are the result of two other theoretical perspectives about the consequences of strategic change: the adaptation view (classic strategic management and dynamic capabilities) and the ecological approach. While from the former, in general, it is assumed that strategic change has a positive effect on the likelihood of organizational survival, from the ecological approach, it is frequently argued that attempts at reorganization in general and strategic change in particular tend to be associated with an increase in the likelihood of organizational extinction. The sample used to test the two proposed hypotheses is the Spanish bank population over the period 1983–97. The results confirm the positive and significant effect of strategic moves (or strategic change) on the likelihood of organizational survival, in line with the conclusions of the adaptive perspective and other empirical research carried out in different settings. This paper introduces two important methodological innovations: (a) the definition and measurement of ‘strategic moves’ (or strategic change) by using a new cluster algorithm, the MCLUST; and (b) the control of the non‐observable heterogeneity using panel data models for ‘probit’ regression.     

The False Promise of Organizational Culture Change: A Case Study of Middle Managers in Grocery Retailing*

ABSTRACT The strategic importance of managing organizational culture has been a central theme in organizational literature over the past two decades. But relatively little attention has been given to the impact of culture change initiatives on managers. This paper reports on the impact of a programme of culture change on managers at one of Britain's leading grocery retail chains. Based on a series of detailed interviews with managers together with examination of company documents and an understanding of trends in grocery retailing, we explain the purpose and content of change, and document and analyse the reactions of those managers who are expected to change their own cultural orientations as well as persuade their subordinates to change. We conclude that in this case at least changes in managerial behaviour, as with previously documented changes in the behaviour of shopfloor workers, are related more to surveillance, direct control and the threat of sanction than any transformation of managerial values. Indeed, the situation and experiences of managers – one of reduced autonomy, close monitoring and control, and perceived career insecurity – are explained less in relation to ‘organizational culture’, more in relation to organizational (re‐)structuring intended to create a more centralized form of organizational control.     

Resilience and the (micro-)dynamics of organizational ambidexterity: implications for strategic HRM

Abstract

In the twenty-first century, resilience has emerged as a seminal and important topic linked to calls for adaptability, well-being and organizational performance. Extant strategic human resource management (HRM) literature and practices have developed many insights into resilience. However, overall, they have a propensity to conceptualise resilience as being associated with ‘macro-’ and ‘extreme’ situations. This paper complements the prevailing perspective by developing a micro-focus on resilience through the conceptual framework of organizational ambidexterity surfacing under-examined individual resilience in connection with HRM practices. Methodologically, the paper adopts a qualitative approach presenting data from two illustrative contexts: an ‘everyday’ quasi-governmental institution and a prima facie ‘extreme’ pan-international military organization. Using template analysis, a number of valuable themes and similarities are identified. The findings and discussion underline the managerial challenges in handling organizational ambidextrous dynamics and tensions surrounding resilience, positive and sceptical approaches in relation to individual and organizational stances towards HRM practices. As such, the results point at value in HRM managers and practices recontextualising and appreciating ‘extremes’ and resilience more as an everyday (rather than exceptional) phenomenon wherein myriad micro-moments are highly significant in constructing and influencing macro-contexts. This also implies a need to see cynical resistance as normative rather than automatically negatively.     

Business at the margins? Business interests in edge urban politics

The issue of the organization, role and influence of business interests in urban politics at the edge of major cities is one that is overdue for investigation. This article provides an initial and empirically oriented investigation of the organization, role and influence of business interests in edge urban politics in Europe. We present findings from five members of a European network of self‐styled ‘edge cities’. Following the now extensive debate in academic literature regarding the applicability of US concepts such as growth machines and urban regimes to the European setting, we draw attention to a diversity of business involvement in urban politics at the edge of Europe’s capital cities. This diversity does include instances that, despite the very different ‘macro‐necessities’ structuring edge urban politics in Europe, approximate to these concepts. Moreover, the diversity apparent in edge urban business politics raises several important questions for future research on urban governance. Namely, the complex connection between the local dependence of business and the organization of its interests; the ‘jumping of scales’ by locally dependent edge urban actors, and the sometimes neglected articulation of business interests with party political organization.     

SOME EVERYDAY RITUALS IN MANAGEMENT CONTROL*

This article examines the way in which observed rituals in management activity appear to contribute to the accomplishment of management control. It argues that any examination of organizational activity involving a dimension so ethereal as ritual is bound to be problematic. It is nevertheless an important feature of organizational life and, therefore, a fruitful framework for understanding complex organizations. The article suggests that in the particular organization studied, issues of management control are expressed in various ways which reflect a chain of command, being alternatively brought into sharp focus and then blurred. It is suggested that this can be seen to represent activities which involve considerable components of what ethnomethodologists might call ‘artful practice’.     

The impact of operator involvement in pollution reduction: case studies in Canadian chemical companies

In contrast to most environmental engineering processes, the effectiveness of employee involvement in pollution reduction seems uncertain, ambiguous and far from being clearly established. For companies whose environmental policies have long rested on technical investments, this uncertainty raises several essential questions, namely ‘what is the true effectiveness of this approach?’, ‘to what degree does employee involvement, most specifically operator involvement, make it possible to significantly and measurably reduce environmental impacts?’ and ‘what type of change could this induce in company operations?’. This article proposes answers to these questions based on an empirical study of the preventive and behavioural aspects of environmental management in the Canadian chemical industry. Conducted in three chemical factories from the Montreal region, the case studies show that significant results, often exceeding managers' expectations, could be obtained through the operators' involvement. However, these results and the precise organizational changes that caused them were difficult to identify, measure and foresee. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.     

Strategy in the Public Sector: Management in the Wilderness

ABSTRACT The central question addressed in this paper is ‘Why have organizational strategies emerged in the public sector?’ Two broad answers are suggested. First, ‘strategies’ profile the organization through identifying aims, outputs and outcomes. Public services must, now, provide such transparency in order to secure on‐going funding from government bodies. Once ‘strategies’ are being produced, they also offer an organizational vision that potential additional funding agencies can buy into (with both commitment and money). And public services are short of resources. Second, ‘strategies’ signal greater devolved responsibility in the public sector for both acquiring resources and achieving results. They enable the inclusion of managerial priorities and values in setting the direction of public services. And politicians desire more control over the professionals that dominate public services whilst, simultaneously, wanting to make them more responsible for outcomes. This article explores the growth of strategic planning in a particular area of the public sector – the national parks. Strategies as ‘dormant documents’ and strategies as ‘funding pitches’ are discussed. It is suggested that, in the public sector, strategies should be the object of strategy.     

‘My Brilliant Career’? New Organizational Forms and Changing Managerial Careers in Japan,the UK,and USA

The end of the traditional management career has been heralded with supporting, albeit largely anecdotal, data. The ‘old’ career was set within internal labour markets in large organizations and characterized by long‐term stability. The ‘new’ arrangements have apparently shifted responsibility from employer to employee, with careers being developed across organizations. Such change is premised on new organizational forms and is often associated with a growing sense of employee insecurity. We explore the reality of this ‘new’ scenario through interpretation of in‐depth semi‐structured interviews conducted with middle and senior human resources managers in large firms in Japan, the UK, and USA. The data indicate that most of our case study organizations had downsized and delayered, with hybrid structural forms emerging. Career prospects were diminished, with fewer vertical promotions and a greater emphasis on lateral ‘development’; middle managers were generally resentful of such factors and forces. Although not directly reflective of ‘Anglo‐American’ business practice, similar changes to career trajectories were witnessed in Japan as in the UK and USA.     

Economic flexibility and society in Italy

There is a positive and stimulating aspect to the current attitude towards social solidarity, especially in a context of economic and social change. Where once the concepts of interest and solidarity were contrasted, micro-level developments of a corporatist nature are contributing to ways of achieving a link between economic flexibility and social solidarity. A greater amount of negotiation is occurring on a range of key industrial issues compromises are being made due to the awareness of a ‘common danger’. In Italy, developments along such lines point to a need to reassess the assumed language used for understanding the politics of industrial relations.